Nvidia’s new financial strategy does not compute

Nvidia's CEO is promoting the idea that computing power should be treated as a financial asset class, partnering with major investment firms to develop $500 billion in financing around this concept. The CEO has argued that chips are now "revenue-generating assets" that are "long-lived" and "productive," though he previously suggested older chip generations would have little value once newer models arrived. The strategy matters because it signals a shift toward securitizing compute infrastructure similar to mortgage-backed securities, but some experts worry this could fail if demand for chips doesn't continue growing, particularly given data center saturation and the rise of powerful open-source models requiring less computing power.